{"id":40,"date":"2017-01-16T21:41:44","date_gmt":"2017-01-16T21:41:44","guid":{"rendered":"http:\/\/fpganow.com\/?p=40"},"modified":"2017-01-16T21:42:49","modified_gmt":"2017-01-16T21:42:49","slug":"from-trump-to-profit","status":"publish","type":"post","link":"https:\/\/fpganow.com\/index.php\/2017\/01\/16\/from-trump-to-profit\/","title":{"rendered":"From Trump to Profit"},"content":{"rendered":"

I am sure that every single trader gets nervous whenever Trump speaks. \u00a0If he says “wall” they have to go short the Mexican Peso, if he talks about Obamacare or the “Unaffordable Care Act”, they have to short Healthcare stocks. \u00a0During his first news conference on Thursday, January 11th, 2017, he went a step further and said he wants bidding and competition for Government purchases of Pharmaceutical drugs. \u00a0So not only did the Mexican Peso suffer, but so did Pharmaceutical companies such as GlaxoSmithKline, Merck and Pfizer, among others!<\/p>\n

His news conference was from 11:00 am to 12:15 pm.<\/p>\n

Here is a chart of the Mexican Peso during this time:<\/span><\/em><\/p>\n

<\/a>
USDMXN – 1\/11\/2017 from 11:00am to 12:15pm<\/figcaption><\/figure>\n

and a chart showing Pfizer:<\/p>\n

<\/a>
PFE US Equity – 1\/11\/2017 from 11:00am to 12:15pm<\/figcaption><\/figure>\n

and GlaxoSmithKline:<\/p>\n

<\/a>
GSK US Equity – 1\/11\/2017 from 11:00am to 12:15pm<\/figcaption><\/figure>\n

See the CNN timeline of Trump’s first news conference here:<\/span><\/p>\n

http:\/\/www.cnn.com\/2017\/01\/11\/politics\/donald-trump-press-conference-as-it-happened\/<\/a><\/p>\n

Now how do you use your custom trading algorithm to make money during such an event as a Trump News Conference? \u00a0Simple, use FPGAs!<\/p>\n

You have your algorithm, which may be as simple as “If PFE drops by x percent in y seconds” then “sell z amount of PFE”. \u00a0Then after PFE drops a further amount, you may choose to buy it all back. \u00a0The algorithm is up to you of course, and my job is to tell you how to use an FPGA to speed it up, because the\u00a0first to sell at the top make the most profit. \u00a0Let’s take a closer look at the chart for GlaxoSmithKline:<\/p>\n

<\/a>
GSK US Equity – 1\/11\/2017 from 11:22am to 11:25am – right before Trump said that he wants bidding on Pharmaceuticals<\/figcaption><\/figure>\n

The major premise is that at the left of this chart trading volume is very high, both for GlaxoSmithKline, other Pharmaceuticals and the markets in general, and that the few trading firms that are able to send sell orders first will make the most money, with those that follow making less and less at an accelerated pace. \u00a0Here is a chart of the volume for GSK during the entire trading day:<\/p>\n

<\/a>
GSK US Equity – Volume and Price Jan 11, 2017 11:21-11:26am<\/figcaption><\/figure>\n

On January 11th, 2017, the average trading volume for the entire day for GSK was 13,003 shares per minute, and here is a table of the volume for the chart above:<\/p>\n\n\n\n\n\n\n\n\n\n\n\n
Minute<\/strong><\/span><\/td>\nVolume<\/strong><\/span><\/td>\nPrice<\/strong><\/span><\/td>\n<\/tr>\n
11:20<\/span><\/td>\n8,145<\/span><\/td>\n39.1599<\/span><\/td>\n<\/tr>\n
11:21<\/span><\/td>\n7,266<\/span><\/td>\n39.16<\/span><\/td>\n<\/tr>\n
11:22<\/span><\/td>\n147,329<\/span><\/td>\n38.97<\/span><\/td>\n<\/tr>\n
11:23<\/span><\/td>\n64,563<\/span><\/td>\n38.95<\/span><\/td>\n<\/tr>\n
11:24<\/span><\/td>\n60,768<\/span><\/td>\n38.821<\/span><\/td>\n<\/tr>\n
11:25<\/span><\/td>\n38,823<\/span><\/td>\n38.8554<\/span><\/td>\n<\/tr>\n
11:26<\/span><\/td>\n23,603<\/span><\/td>\n38.8368<\/span><\/td>\n<\/tr>\n
11:27<\/span><\/td>\n34,205<\/span><\/td>\n38.8001<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Look at the spike in volume at 11:22, and look at the price difference!<\/p>\n

So a trader or algorithm looking to exploit this opportunity faces some challenges.<\/p>\n